If the Nominal Interest Rate Is 4

question 39

Multiple Choice

If the nominal interest rate is 4.2 percent and the rate of inflation is -0.5 percent,then the real interest rate is

• A)-8.4 percent.
• B)-2.1 percent.
• C)3.7 percent.
• D)4.7 percent.

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Definitions:

Cannon-Bard Theory

A theory of emotion that proposes emotions and bodily reactions occur simultaneously in response to stimuli, contrary to earlier theories that suggest a sequential process.

Two-factor Theory

A theory suggesting emotion is based on physiological arousal and cognitive labeling of that arousal.

Schachter-Singer Theory

A theory of emotion that states emotions are determined by physiological arousal and the cognitive interpretation of that arousal.

Spinal Cord

A major part of the central nervous system which conducts sensory and motor nerve impulses to and from the brain.